On January 1, 2015, Carter Sales Issued $15,000 in Bonds

question 120

Multiple Choice

On January 1, 2015, Carter Sales issued $15,000 in bonds for $14,700. They were 6-year bonds with a stated rate of 9%, and pay semiannual interest. Carter Sales uses the straight-line method to amortize the Bond Discount. Immediately after issue of the bonds, the ledger balances appeared as follows: After the first interest payment on June 30, 2015, what will be the balance in the Discount Account?

• A)Debit of $275
• B)Debit of $300
• C)Debit of $325
• D)Credit of $25

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Definitions:

Competency Matrix

A list of the level of each competency required for each of a number of jobs.

Behaviourally Anchored Rating Scales

A performance appraisal method using specific behavioral examples as benchmarks to rate employee performance.

Noncomparative Evaluation

An assessment method where the performance or value of an item or individual is evaluated based on a set standard or criteria without direct comparison to other items or individuals.

Forced Distribution

A performance evaluation method where employees are ranked in groups and forced into a predetermined rating distribution, such as a bell curve.